Emerald Corporation, a calendar year and accrual method taxpayer, provides the following information and asks you to prepare Schedule M-1 for 2017:
Net income per books (after-tax) ....................................................... $257,950
Federal income tax per books .............................................................. 41,750
Tax-exempt interest income ................................................................ 15,000
Life insurance proceeds received as a result of death of corporate
president ....................................................................................... 150,000
Interest on loan to purchase tax-exempt bonds .............................................. 1,500
Excess of capital losses over capital gains .................................................... 6,000
Premiums paid on life insurance policy on life of Emerald's president .................. 7,800